Forward’s Bid to Consolidate Solana Treasury Firms Hits Wall After Rejections
Summary
- Forward Industries sought to acquire publicly traded companies with large Solana holdings, but HSDT, SkyAI and Brera Holdings rejected its offers in succession.
- Forward said it holds about 7 million SOL, acquired for about $1.6 billion, with a current value of about $525 million, leaving it with an unrealized loss of more than $1 billion.
- The market sees weak Solana prices as a factor that could increase merger and restructuring pressure on Solana treasury companies, though resistance to low-valuation deals could slow the sector’s reorganization.
Forecast Trend Report by Period
Forward Industries, a publicly traded company with a large Solana holding, sought to acquire other listed Solana treasury companies but was repeatedly rebuffed, Cointelegraph reported on June 16. The failed talks come as falling Solana prices add to financial strain across the sector and complicate consolidation efforts.
Cointelegraph said Forward submitted acquisition proposals to Solana treasury companies including HSDT, SkyAI and Brera Holdings.
Solana treasury companies are listed firms that buy and hold Solana as a corporate asset. The model mirrors Strategy’s approach to Bitcoin, but applied to Solana. It also leaves those companies exposed to declines in Solana’s price.
Forward proposed a stock-for-stock deal to HSDT shareholders. Under the offer, investors would receive 0.386 newly issued Forward shares for each HSDT share. Forward said the proposal valued HSDT at $1.63 a share.
HSDT’s board rejected the bid. Forward said it was disappointed that the board turned down the proposal without further discussions.
SkyAI did not respond to Forward’s offer, which expired on June 13. Brera Holdings also rejected Forward’s stock-swap proposal on June 9.
Forward has argued that listed Solana-related companies would gain scale and liquidity by combining rather than operating separately. But with the target companies declining to engage, consolidation is unlikely to advance easily for now.
Forward says it is the largest Solana treasury company. According to CoinGecko, it holds about 7 million SOL acquired at a cost of about $1.6 billion. Those holdings are now worth about $525 million, leaving the company with an unrealized loss of more than $1 billion.
Investor interest in Solana treasury companies has also weakened. August Widmer, a partner at investment firm EcoBase, said investors have lost interest in treasury companies over the past year because they appeared riskier and less efficient than dedicated structured products.
He added that the companies are trying to consolidate to survive, but the latest rejections show some are still unwilling to give up an independent path.
The market expects continued weakness in Solana to increase pressure for mergers and restructurings among Solana treasury companies. But the sector’s reshaping could be slow if takeover targets remain reluctant to merge at depressed valuations.
